Slowly, the numerous properties that were owned by Quarry Rock Developments are being sold off one by one, with the latest being a project called The Met.
The Met was set for 2245 McAllister Avenue in Port Coquitlam, about half a block west of the provincial courthouse. For the site, Quarry Rock Developments was planning a six-storey mixed-use building with 80 residential units and 19,530 sq. ft of commercial space, in addition to a public plaza.
The property was owned by Quarry Rock Developments (McAllister) Inc. and beneficially owned by Quarry Rock Developments (McAllister) Limited Partnership, both of which were the subject of the receivership proceedings that were initiated by Edmonton-based Canadian Western Bank (CWB).
As previously reported by STOREYS, The Met was just one of nine properties owned by Quarry Rock Developments that was subjected to receivership or foreclosure at that time.
The Receivership
The receivership application by Canadian Western Bank was granted by the Supreme Court of British Columbia on April 2, pursuant to a loan agreement reached with QRD in October 2020. That agreement was later amended and was for a loan facility up to $24,250,000 and a credit facility up to $3,900,000.
Also listed as respondents in the case were Lawson Acquisitions Ltd., Willis Developments Inc., and Quarry Rock Developments Inc., which were identified as the guarantors of the loan.
According to case documents, "a number of factors including construction delays and rising costs of borrowing" resulted in the developer becoming unable to fund their financial obligations as they became due, with CWB issuing a Notice of Intention to Enforce Security in November 2023.
As of the receivership order, CWB was owed approximately $12.7 million. The total amount of secured debt on the property, however, was around $23,016,000 when including other secured creditors and registered liens.
The Sale
A rendering of The Met planned for 2245 McAllister Avenue in Port Coquitlam. / Colliers
Just prior to the receivership coming into effect, Quarry Rock Developments had made an attempt to sell the project, ultimately entering into a sale agreement on March 25 with Mosaic Seniors Care Society for $25,000,000. The transaction fell through, however, after Mosaic did not pay the required deposit.
Following the receivership, the sales process for 2245 McAllister Avenue commenced on April 24 with the Receiver retaining Hart Buck and Jennifer Darling of Colliers to list the property. The property was listed with an asking price of $18,500,000 — higher than the BC Assessment valuation (dating back to July 1, 2023) of $15,065,000 as well as the $16,800,000 appraisal by Altus Group.
In June, the BC Frontier Housing Society, a non-profit that was formed this year, voiced interest in acquiring the project for $28,400,000, contingent on receiving financing from the Province's BC Builds program. However, the BC Frontier Housing Society said that "BC Builds may have difficulty advancing a transaction until after the Provincial election," according to court documents, and that became the case as the non-profit ultimately did not submit a completed offer sheet.
Colliers then returned with four other bids that had varying prices and conditions. West Urban Development submitted a bid of $8,000,000, 1485991 BC Ltd. submitted a bid of $13,250,000, 1296709 BC Ltd. submitted a bid of $8,000,000, and NorthStar Acquistions Ltd submitted a bid of $9,000,000, according to court documents.
After counteroffers and negotiations, the Receiver entered into a sales agreement on September 19 with NorthStar Acquisitions Ltd. — also known as Northstar Development — for $10,000,000. The transaction was approved by the Supreme Court on November 20 and is expected to close on January 22.
